GRI Indexes:

Główne założenia Polityki Środowiskowej KGHM Polska Miedź S.A.

  • maintenance of fully operational equipment protecting the environment,
  • following up technical developments to reduce the environmental impact of the industry and applying new solutions as required and possible,
  • development of waste management techniques and a steady increase in the share of managed waste in the total waste amount,
  • ongoing cooperation with the local community and authorities for the benefit of the environment,
  • cooperation at the level of the Ministry of Environment in the implementation of the state’s environmental policy
  • cooperation with the European mining and non-ferrous metal industries within the framework of industry organizations when drawing up European Union environmental documents

As a socially responsible company, we cannot and we do not want to evade our responsibility for the environment. The extraction and subsequent processing of copper ore at all stages of production are inextricably linked to exerting an impact on various parts of the environment. Compliance with stringent legal standards is possible due to the systematic modernization of existing installations and the construction of new ones which reduce and minimize the impact on the environment.

The Group has identified material environmental risks and how to mitigate them


Risk
Mitigation
Natural environment and climate changes
(Group KGHM) The extraction of copper ore and its subsequent processing at all production levels is inextricably associated with affecting particular components of the natural environment. The risk associated with p
Compliance with stringent environmental standards following from the law is possible due to the systematic modernization of installations for protecting the environment, both those built in the past and new investments in this f eld. In the Parent Company, a CO2 Emissions Management System and ISO 14001 environmental management standards have been implemented.
 
(Parent Company) The risk associated with the assessment of air quality in the Dolnośląskie Voivodship (exceeding the annual average target level for arsenic in PM10 particulate matter).
Performance of the duties resulting from Air Protection Programs..
Waste management
(Parent Company) Risk of inability to store flotation tailings
Operation, construction and expansion of the storage facility in accordance with the operating manual. Cooperation with the Team of International Experts (Międzynarodowy Zespół Ekspertów - ZEM) and the General Designer, introduction of the Observation Method in the period of expansion recommended by ZEM based on the evaluation of geotechnical parameters obtained through evaluation of monitoring results that of er the ability to request to keep the facility being built/operated. Introduction of the LCA model and circular economy
Availability of materials and utilities
(Group KGHM) Risk related to unavailability of the necessary utilities (electricity, natural gas, water).
Ensure that emergency supply systems are in place for key utilities and conduct ongoing evaluation of the security of grid power supply. Conduct several investment projects to strengthen energy security.
Production and infrastructure
(Group KGHM INTERNATIONAL LTD.)
Geotechnical risk in open pit mines (stability of slopes) and in underground mines. Risk of failure to achieve the assumed leach extraction performance parameters
Law and regulations, taxes
(Group KGHM) Risk of changes in legal regulations in the area of e.g. geological and mining law, environmental and energy regulations
Monitor legal developments at the level of individual jurisdictions and taking an active part in legislative processes. Take preemptive measures to adapt to changes with respect to organization, infrastructure and technology. Implement the energy management system in KGHM Polska Miedź S.A. based on the ISO 50001 standard.

The risk is validated on a quarterly basis on a five-degree scale using an expert method and influences the Management Board’s decisions. Risk data are analyzed in positive or negative categories on the scale of 1-5 in the Natural Environment dimension.

KGHM INTERNATIONAL LTD.

We also care for the environment in our international operations. In the Robinson mine (USA), we thoroughly monitor the quality of the air and water, we manage waste and remediate mining areas – we spent approx. 

PLN 32.2 million for those purposes. In the Carlota mine (USA), activities related to the closure of the mine and environmental monitoring were carried out, with the expenditures for this purpose amounting to about PLN 5.9 million. Also, the Franke mine (Chile) conducted activities related to dust control, waste management and environmental impact monitoring, with total expenditures of approximately PLN 2.6 million. 

There is no system of environmental emission fees in Chile. Expenditures in other operations amounted to roughly PLN 1.0 million.

GRI Indexes:

Energy Policy of KGHM Polska Miedź S.A.

We are the largest electricity consumer in Poland. We consume nearly three terawatt-hours per year - we know how to implement a rational energy economy while ensuring the security of energy supply to facilities and installations within the production process. Since November 2016, the Energy Policy of KGHM Polska Miedź S.A. has been implemented in the Company. The Policy assumes, among other things, the standard of management of energy utilities in accordance with ISO 50001.W naszej Polityce Energetycznej zobowiązujemy się do:

In our energy policy we undertake to accomplish the following:
  • provide all the resources required to achieve the planned objectives and tasks in the energy management area,
  • operate in accordance with legal regulations and other energy management requirements,
  • prevent waste in the area of energy consumption,
  • cooperate with partners and suppliers in the procurement of material goods and services having regard to energy efficiency as an important selection criterion,
  • develop desirable attitudes, building energy awareness and constantly improving competencies of the Company’s employees and business partners who carry out tasks for the benefit of KGHM Polska Miedź S.A

The tenets of the Energy Policy embraced by KGHM Polska Miedź S.A. are implemented by all our employees. The application of the Energy Policy has resulted in introducing several regulations and taking actions to ensure that energy management is rational and complies with legal requirements.  They include for example:

  • rules of conduct in the investment and procurement process,
  • energy reviews carried out at KGHM Branches and the Head Office in accordance with the approved methodology.
GRI Indexes:

Energy Management System (EMS)

In 2017, we implemented the Energy Management System complying with the ISO 50001 standard in KGHM Polska Miedź and in Energetyka. As a result of the implementation of SZE and application of the Energy Policy, the costs of energy audits are avoided, which must be performed pursuant to the Energy Efficiency Act if no certified Energy Management System is in place.

KGHM Polska Miedź S.A. is the largest company in Poland which has received an Energy Management System Certif cate complying with the ISO 50001 standard.

Energy Management System:

The Energy Management System enables us to reduce the emission of greenhouse gases and the costs of purchase of CO2 allowances. By implementing standards and improving procedures, we are also improving occupational safety and increasing the competence of our employees.

Water and the use of soil

We ensure at KGHM Polska Miedź S.A. that the quality of local water resources is not affected by its activities. Water is an important component of the copper production process. It is used, among others, to enrich ore (by flotation), to transport waste by water, and also in the process line in smelters. The largest quantities of water are used in flotation (the process involves separation of minerals from the waste rock and forming the concentrate by compacting). Total water consumption in the Polish KGHM Group companies alone exceeds 20 million m3. 

This is why for us water is a very valuable resource in the production processes. In Poland, the flotation process uses mainly water from mine drainage. It then circulates in a closed circuit between the Ore Processing Plants and the Żelazny Most Tailings Storage Facility. In each of our plants, we operate technologically advanced wastewater treatment plants. We also do not allow water from the production process to get into surface waters or to contaminate groundwater. 

The Żelazny Most Tailings Storage Facility is the only place where copper ore flotation tailings from all KGHM Polska Miedź S.A. Mines can be deposited. It is one of the best monitored, also in terms of environmental protection, facilities of this type in the world, as evidenced, among others, by the geodetic observation network with as many as 500 research points used to study the deformation of the crown and the foreground of the reservoir. Excess water in the Żelazny Most reservoir is discharged to the Oder river by hydrotechnical method (periodically). 

This process has been developed and implemented in cooperation with scientific entities and in accordance with the requirements of the Water Law Act. The research shows that the discharge of mine and technological waters to the Oder river does not cause changes affecting the proper functioning of aquatic ecosystems.

GRI Indexes:

8 6.4.1 Water in technological processes at KGHM

1. We acquire

KGHM Polska Miedź S.A.’s respect for and its responsible attitude towards the natural environment are the key elements of our strategy.


 Mines

Waters captured in the drainage process carried out in the Mines are used in various technological processes, in particular:

- for hydraulic backfill
- for f ushing in drilling equipment
- in the pipeline network of the f re-extinguishing system.

 Energetyka sp. z o.o.

The company manages water supplied for consumption and sanitary purposes in the branches of KGHM Polska Miedź S.A.

- management of water intakes,
- collection of wastewater.


2. We use

Water is used in a number of technological processes, the most important one of which is the ore enrichment process.

   Ore Enrichment Plants

The Ore Enrichment Plant Division uses water as part of the ore enrichment process for the following purposes:

- grinding and grading of mine output,
- flotation,
- concentrate drainage (compacting, filtering and drying)

Subsequently, the concentrate is sent to smelters and post-flotation wastes are deposited at the Żelazny Most Tailings Storage Facility

Hydrotechnical Plant

The Plant is responsible for:
- environmental management,
- technological water management,
- wastewater and sludge management,
- discharging excess water to the Oder river.

 Cuprum Sp. z o.o. - CBR

This company monitors groundwater and surface water for KGHM Polska Miedź S.A.

   CBJ Sp. z o.o. 

At all stages of the process, water quality and content are controlled. The Quality Assessment Centre (CBJ) is responsible for this.

BEST PRACTICE

The system for monitoring chloride and sulfate loads in mine waters developed by KGHM employees won an award in the national Champion in Technology competition. The system for monitoring pollution loads collected with waters taken in for technological processes is used in the Mines and the Hydrotechnical Facility. Expenditures for the projects did not exceed PLN 1 million. After two years, the company did not have to pay fees for using the environment for chloride and sulfate loads discharged to the Odra river any longer. Owing to this, over PLN 28 million was saved in 2017.

Environmental activity of KGHM Polska Miedź S.A.

KGHM Polska Miedź S.A. is the largest company in Lower Silesia and, being socially responsible, we cannot and do not want to avoid being responsible for the condition of the environment in which we live. The concept of sustainable development, including in particular the respect for the natural environment, is one of our key values. The extraction and subsequent processing of copper ore at all stages of production is inextricably linked to the impact on the individual components of the environment. Compliance with stringent environmental standards following from the law is possible due to the systematic modernization of installations for protecting the environment, both those built in the past and new investments in this field. In 2017, the company spent nearly PLN 369 million on environmental investments, including the largest expenditures of over PLN 72 million for the Pyrometallurgy Modernization Program at the Głogów I Smelter. Pursuant to the sustainable development agreement signed in 2013 between the Management Board of the Głogów County and the Management Board of KGHM Polska Miedź S.A., a soil liming campaign was carried out in the Pęcław township in 2017. Pursuant to the resolution adopted by the Management Board of KGHM Polska Miedź S.A., the Pęcław township received the financial resources that allowed it to conduct liming soils used for agricultural purposes on an area of 1,370 ha where, according to an expert opinion, it was needed and necessary.`

Environmental usage fees incurred by KGHM Polska Miedź S.A. Divisions in 2017 amounted to PLN 14 million. It was over PLN 10 million less than in 2016. Such a significant reduction of fees was achieved following the launch of a system for monitoring chloride and sulfate loads at the copper ore mines, which lets them calculate the fee for a discharge of surface water from the Żelazny Most Tailings Storage Facility reduced by the chloride and sulfate loads measured in the collected water. Last year, the landfill fee of PLN 7 million – constituted the largest part of the fee structure. The next largest cost item amounting to more than PLN 4 million, is the fee for the air emission of dust and gases.

KGHM Polska Miedź S.A. operates ten installations, which pursuant to the Environmental Protection Law Act, require an integrated permit. Following the entry into force of the decision of the European Commission (EU) establishing best available techniques for the non-ferrous metals industry, we reviewed the existing integrated permits from the point of view of their compliance with the applicable law and submitted requests to amend these decisions. Our Hydrotechnical Facility Branch has a license to operate the ”Żelazny Most” Tailings Storage Facility and the sectoral permits required by law. In December 2017, the Mayor of the Rudna Township issued a decision on environmental conditions for the construction of the southern quarters of the Tailings Storage Facility. Other Branches of the company hold sectoral administrative decisions allowing them to use the environment. The installations at the Głogów Smelter and the Legnica Smelter and the combined cycle units in Polkowice and Głogów also hold permits for the participation in the CO2 emissions trading system, as KGHM Polska Miedź S.A. has participated in the obligatory EU Emissions Trading System (EU ETS) since 2013.

In 2017, the previous year emission in the amount of 767 thousand tonnes Mg CO2  was covered by free allowances (597 thousand tonnes Mg CO2 ) supplemented with purchases of allowances (EUAs – EU emission allowances and CERs – certified emission reduction units). In 2017, it is expected that emissions of about 1.1 billion tonnes Mg of CO2 will be covered by free allowances for the Głogów Smelter and the Legnica Smelter and additional allowances received for the Głogów Combined Cycle Unit for 2016 and 2017 (total amount of 580 thous. Mg CO2 ) and purchases of allowances (EUAs and CERs) for more than PLN 15 million. The largest pending environmental projects are as follows:

• construction of a concentrates roasting plant in the Głogów Smelter,

• update of the integrated permit for the planned construction of the WTR furnace in the Legnica Copper Smelter and Refinery, 

• oversight of the CO2 emissions trading system,

• works related to the safety of the ”Żelazny Most” Tailings Storage Facility, including loading of dumpsite walls,

• continuation of the health promotion and environmental hazards prevention program targeted at the population living in the nearest vicinity of              metallurgical installations,

 • construction of the southern quarter of the Żelazny Most Tailings Storage Facility.

KGHM Polska Miedź S.A. is a member of six international consortia established to meet the requirements of the REACH Regulation. In 2017, cooperation with the consortia involved adaptation of the companies to the changing REACH requirements for registration dossiers, substance classification, evaluation and authorization.


GRI Indexes:

Direct and indirect energy consumption by the organization

1Total consumption of non-renewable raw materials (own or purchased) in Joules or a multiple thereof, broken down by type of raw material
KGHM Polska Miedź S.A.
2017
Values (MWh)
Values (MWh)
Non-renewable
Coal
--
Natural gas
1,998,376.06-
Heating oil
--
Diesel fuel
--
Total
Total consumption
1,998,376.06-
2Total consumption of energy produced or purchased, by electricity, heat in Joules or multiples thereof
KGHM Polska Miedź S.A.
2017
Values (MWh)
Values (MWh)
OdnawialneBiomasa--
Biopaliwa--
Energia wiatrowa--
Energia słoneczna--
Energia geotermalna--
Energia wodna--
Inne (t)--
TotalTotal consumption
--
3Total energy sales: electricity, heat, cooling and steam, in Joules or multiples thereof
KGHM Polska Miedź S.A.
2017
Values (MWh)
Values (GJ)
 Solar energy
2,843,054.84-
Heat (including consumption of steam, consumption of cooling energy)
-1,196,842
TotalConsumption energy
2,843,054.841,196,842
4Total energy sales: electricity, heat, cooling and steam, in Joules or multiples thereof
KGHM Polska Miedź S.A.
2017
Values (MWh)
Values (GJ)
 Total sales of electricity
177,661.40-
Total sales of heat (net)
-104,781
Total sales of cooling energy
--
Total sales of steam
--
TotalSales
177,661.40104,781
5Total energy consumption within the organization according to the formula
4,663,769.54,460,884
GRI Indexes:

Indirect greenhouse gas emissions

Indirect emissions, by source
Greenhouse gas emissions (tCO2e)
KGHM Polska Miedź S.A.
2017
Emissions resulting from electricity purchased for own needs
1,879,943
Emissions resulting from heat purchased for own needs
195,132
Emissions resulting from cooling energy or steam purchased for own needs
-
Total indirect emissions
2,075,075
GRI Indexes:

Total weight of waste by type and disposal method

No.Total weight of hazardous and non-hazardous waste, by treatment method
Weight of waste in 2017 (Mg)
KGHM Polska Miedź S.A.
Waste other than hazardous waste
Hazardous waste
1Re-use of waste
1,990.020.00
2Recycling (including organic recycling, e.g. composting)
1,617.5911.60
3Recovery (including recovery of energy)
20,319,920.93
43,257.71
4Incineration (or use as fuel)
0.000.00
5Storage in landfills
10,721,329.78142,211.81
6Discharge to deep wells
0.00
0.00
7Storage on site
227,981.0063,981.45
8Other
145.3441,069.95
 Total31,272,984.66
380,255.71
GRI Indexes:

Monetary value of fines and the total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Information on administrative and judicial sanctions imposed on the organization for non-compliance with environmental legislation

KGHM Polska Miedź S.A. za rok 2017
Total value of fines for non-compliance with environmental laws and regulations [PLN]
8,204.00 PLN
Number of non-financial, administrative and judicial sanctions imposed on the organization for non-compliance with environmental legislation, including international declarations/conventions/treaties and national, regional and local laws, as well as voluntary arrangements with regulatory bodies that are considered binding
-
GRI Indexes:

Relations with trade unions

There are 15 trade unions active in KGHM Polska Miedź S.A. which form 48 trade union organizations. 88.6 percent of all employees are members of trade unions. The mutual rights and obligations of the employees and our Group, including primarily the remuneration conditions and other benefits connected with work at KGHM Polska Miedź S.A., are governed by a collective labour agreement.

In 2017, the following major events took place regarding relations with trade unions:
Date
Event
21 February 2017
Additional Protocol No. 20 to the Collective Labor Agreement for KGHM Polska Miedź S.A. Employees was signed, amending Appendix No. 2, or the table of monthly rates of base remuneration.
11 April 2017
The Trade Union of Copper Industry Employees initiated a collective dispute about the issues of remuneration and social conditions as well as improvement of occupational and safety at work. As a result of negotiations and mediations, on 17 August 2017, an agreement was signed ending the collective dispute.
10 August 2017
Additional Protocol No. 21 to the Collective Labor Agreement was signed, on the basis of which all the positions def ned in the table of rates constituting Attachment No. 1 to the collective agreement were reclassified to one category higher.

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